Care Service Co (TSE:2425) Interest Coverage: 84.67 (As of Sep. 2025) — 19% Below Median


TSE:2425 Care Service Co Ltd TSE:2425
60 GF Score
Price 円624.00
GF Value 円817.17
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Care Service Co Interest Coverage?

Care Service Co TSE:2425 -0.32% 60 Interest Coverage is 84.67 as of Sep. 2025, which is 19% below its 10-year median of 104.51. GuruFocus rates TSE:2425 with a GF Score™ of 60/100 and a GF Value™ of 円817.17 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 452 Healthcare Providers & Services companies, Care Service Co ranks worse than 221238.72% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Care Service Co's Operating Income for the six months ended in Sep. 2025 was 円28 Mil. Care Service Co's Interest Expense for the six months ended in Sep. 2025 was 円-0 Mil. Care Service Co's interest coverage for the quarter that ended in Sep. 2025 was 84.67. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Care Service Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Care Service Co's Interest Coverage or its related term are showing as below:


TSE:2425's Interest Coverage is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 7.99
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Care Service Co  (TSE:2425) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Care Service Co Interest Coverage Related Terms


Care Service Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Care Service Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Care Service Co Interest Coverage Chart

Care Service Co Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.21 102.32 121.61 283.06 104,192.80

Care Service Co Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 163.09 490.46 480.40 0.00 84.67

TSE:2425 vs HCA, THC, DVA: Interest Coverage Comparison

For the Medical Care Facilities subindustry, Care Service Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Care Service Co Interest Coverage vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Care Service Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Care Service Co's Interest Coverage falls into.


TSE:2425
60GF Score
Care Service Co Ltd TSE:2425
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Care Service Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Care Service Co's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Care Service Co's Interest Expense was 円-0 Mil. Its Operating Income was 円521 Mil. And its Long-Term Debt & Capital Lease Obligation was 円37 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*520.964/-0.005
=104,192.80

Care Service Co's Interest Coverage for the quarter that ended in Sep. 2025 is calculated as

Here, for the six months ended in Sep. 2025, Care Service Co's Interest Expense was 円-0 Mil. Its Operating Income was 円28 Mil. And its Long-Term Debt & Capital Lease Obligation was 円0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2025 )/Interest Expense (Q: Sep. 2025 )
=-1*27.519/-0.325
=84.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 84.67 mean?
Care Service Co (TSE:2425) has a Interest Coverage of 84.67 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Care Service Co and its competitors. This is 19% below median its historical median of 104.51. Over the past decade, Care Service Co's Interest Coverage has ranged from 54.09 to 104,192.80. According to the industry distribution chart, Care Service Co ranks #999999 out of 452 companies in the Healthcare Providers & Services industry.
Is Care Service Co's Interest Coverage too high?
Care Service Co's current Interest Coverage of 84.67 is 19% below median its 10-year median of 104.51. Over the past 10 years, this metric has ranged from a low of 54.09 to a high of 104,192.80. The Healthcare Providers & Services industry median Interest Coverage is 7.99. Care Service Co's value of 84.67 is 959.7% above this industry median. Based on the distribution chart, Care Service Co ranks #999999 out of 452 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Care Service Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Care Service Co's Interest Coverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Care Service Co ranks #999999 out of 452 companies for Interest Coverage. This places Care Service Co in the lower half of its industry. The industry median Interest Coverage is 7.99. Care Service Co's value of 84.67 is 959.7% above this benchmark. Historically, Care Service Co's own Interest Coverage has ranged from 54.09 to 104,192.80 over the past decade. While the company's 10-year median is 104.51 vs. the industry median of 7.99, Care Service Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Healthcare Providers & Services company?
The median Interest Coverage among Healthcare Providers & Services companies is 7.99, based on 452 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Care Service Co's current Interest Coverage of 84.67 is 959.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Care Service Co and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 7.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Care Service Co's current Interest Coverage is 84.67, which is 19% below median its own 10-year median of 104.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Care Service Co stock overvalued right now?
Based on GuruFocus' analysis, Care Service Co (TSE:2425) is currently considered Modestly Undervalued. The stock's GF Value™ is 円817.17, compared to a current price of 円624.00 — trading 23.6% below its estimated fair value. The current Interest Coverage is 84.67, which is 19% below median its 10-year median of 104.51 and 959.7% above the Healthcare Providers & Services industry median of 7.99. Care Service Co's overall GF Score™ is 60/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Care Service Co (TSE:2425), the current Interest Coverage is 84.67 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Care Service Co (TSE:2425) Overvalued in 2026?

Based on GuruFocus' analysis, Care Service Co stock appears to be undervalued. The current stock price of 円624.00 is trading 23.6% below its estimated GF Value™ of 円817.17. GuruFocus considers Care Service Co to be Modestly Undervalued.

Key valuation signals for TSE:2425:

  • Interest Coverage: 84.67 (19% below median its 10-year median of 104.51)
  • GF Value™: 円817.17 vs. price of 円624.00 (23.6% below fair value)
  • GF Score™: 60/100 with 1 warning sign
  • Industry Position: 959.7% above the Healthcare Providers & Services median (#999999 of 452)

No single metric tells the full story. See the TSE:2425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Care Service Co Business Description

Address 2-3 Omorikita 1-chome, Oimori Miyuki Building, Tokyo, JPN, 143-0016
Care Service Co Ltd provides nursing care services to the handicapped and elderly in Tokyo. The Company's services include day-care, 24-hour home-visit care, home-stay care, and bathing services, small-scale multifunctional in-home care, clean service. It also lends and sales assistive welfare equipment.
60GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円624.00
Price
円817.17
GF Value